Potentially huge news for the next generation of MINIs set to debut around 2012 (via Motoring Authority):

>Unlikely bedmates BMW and the PSA Peugeot Citroen Group are breaking up – or at least asking each other for some space. The two companies had joined forces in recent years to produce a range of 1.4L to 1.6L motors, powering BMW’s second-generation MINI and cars from Peugeot and Citroen. The venture was originally intended to help the auto makers to improve engine technology in the fiercely competitive compact car segment, while saving money by sharing development costs.

>BMW development executive Klaus Draeger recently told a German industry publication that cooperation with PSA was effectively ended. This news comes despite plans in late 2006 to evaluate the expansion of joint engine development efforts. Despite the success of the motors spawned by the joint venture, the engines were quite expensive to produce according to PSA boss Christian Streiff.

[ BMW and PSA to End Engine Development ] Motoring Authority